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ArcelorMittal, Resurgent Power may put in joint bid for Essar Power’s plant

ArcelorMittal is in talks with Resurgent Power Ventures Pte for buying out Essar Power’s 1,200-megawatt generation plant in Madhya Pradesh, sources told Bloomberg.

As per the report, preliminary discussions have already begun.

ArcelorMittal had previously submitted a non-binding offer of Rs 4,800 crore for the same asset, sources told the wire agency on condition of anonymity. If Resurgent comes on board, it would help Arcelor buy the plant without putting much stress on its balance sheet. Sources said that the discussions are still ongoing and there is no guarantee that a deal will take place.

One of Resurgent Power’s stakeholders is Tata Power Co, which has a 26 percent stake while ICICI Bank and sovereign wealth funds of Oman and Kuwait are the others.

The Essar Group and Arcelor have been tangled in the former’s bankruptcy proceedings for over a year under the Insolvency and Bankruptcy Code (IBC), wherein Arcelor is trying to gain control of the company. Acquiring the Madhya Pradesh plant will give Arcelor a huge boost in its efforts to win the Essar.

ArcelorMittal’s Rs 42,000 crore bid was accepted by a consortium of lenders to Essar Steel. However, the Supreme Court ordered to halt the plan in April due to issues.